DALLAS, Dec. 5, 2003 -- Alliance Data Systems Corp., a provider of transaction services, credit services and marketing services, announced that it has acquired Orcom, a provider of customer care and billing services to electric, gas, water, and waste water utilities in North America.
Orcom has operations in Colorado, Nebraska, Oregon and Pennsylvania, with approximately 400 employees serving a number of utility clients, and generating more than 1 million statements per month. Orcom is expected to generate core revenue of at least $30 million per year.
The first phase of Alliance's business strategy for the utility market targeted investor-owned utilities as well as deregulated utilities in North America's transitioning and deregulated markets. More recently, Alliance began an expansion into the large municipal utility market.
With today's announcement, Alliance has further extended its targeted market to include municipal utilities with 50,000 accounts or greater. Orcom's billing and customer care solution, which has demonstrated proven success in the municipal market for electric, gas and water utilities, will build upon Alliance's offering.
Mike Beltz, president, Utility Services, Alliance Data Systems, said, "Alliance has consistently demonstrated its ability to successfully serve deregulated utilities, large investor-owned and municipal utilities, as well as mid-market accounts and the sub-metering market. This acquisition continues to broaden our utility product offering and extends our reach in the municipal market, which we view in particular as a prime opportunity for providing outsourced billing and customer care solutions."
The purchase price roughly corresponded to annual revenue, and the acquisition is expected to be neutral to Alliance's earnings in the first year and accretive thereafter.
About Alliance Data Systems
Based in Dallas, Alliance Data Systems is a provider of transaction services, credit services and marketing services. The company assists retail, petroleum, utility and financial services clients in managing the critical interactions between them and their customers. Alliance Data manages over 72 million consumer relationships for some of North America's most recognizable companies and operates and markets the largest coalition loyalty program in Canada. Alliance Data Systems employs approximately 7,000 associates at more than 20 locations in the United States and Canada. For more information about the company, visit its web site, www.alliancedatasystems.com.
